Seeking Alpha

Taper boosted; Fed asset purchases lowered to $65B per month

  • In Ben Bernanke's last meeting as Fed chief, the FOMC tapers its QE pace to $65B per month from $75B.
  • FOMC statement
Comments (33)
  • Guardian3981
    , contributor
    Comments (2149) | Send Message
     
    Yes! Only another 65billion to go on a useless program that should of never been done to begin with.
    29 Jan 2014, 02:06 PM Reply Like
  • Topcat
    , contributor
    Comments (481) | Send Message
     
    Nonsense..it saved the world from a great depression II by giving countries and investors a safe haven, when nowhere was safe in the crisis. USA meanwhile makes a huge mistake by not borrowing at near zero interest rate in order to upgrade our transportation, communications, power systems to keep pace with the rest of the world. We will never have that chance again.
    29 Jan 2014, 02:10 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9404) | Send Message
     
    A safe haven in this instance was being able to run from a burning building into a house where only the kitchen and living room are on fire.
    29 Jan 2014, 02:47 PM Reply Like
  • Jake2992
    , contributor
    Comments (831) | Send Message
     
    Agreed, another one in a lifetime opportunity blown by right wing extremists in the congress. That is why Republicans aren't fit to govern.
    29 Jan 2014, 03:19 PM Reply Like
  • jjlester345
    , contributor
    Comments (3) | Send Message
     
    Like Japan has done for the last 20 years, now they have found QE instead of endless infrastructure projects
    29 Jan 2014, 03:25 PM Reply Like
  • TBV
    , contributor
    Comments (142) | Send Message
     
    totally agree
    29 Jan 2014, 03:37 PM Reply Like
  • Irving01
    , contributor
    Comments (8) | Send Message
     
    QA aided wealthy people and banks who were able to unload bad investments that will now "mature" on the fed balance sheet. These privileged few, who get the backing of the fed to cover their mistakes, invested their fed printed winnings in the market and hence the bull run. Now that all historic safe savings vehicles have been destroyed, main street is starting to load into the stock market again. And just in time for the privileged to start taking their profits. I'm sure they'll be back to buy on the big dip. It's an easy game if you have the capital, are of the privileged class and have a central bank cover your losses.
    29 Jan 2014, 09:52 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11474) | Send Message
     
    Saved is a strange word for something that has thrown us into economic limbo for years now and can't be unwound. As for a Great Depression, it's hard to say if there would have been one, but its easy to see that there most likely will be one if QE is reversed. Right now we aren't even talking about its reversal, just stopping its expansion, and look at what it is causing.

     

    It's my bet the US will never be able to stomach a complete cessation of QE. It must be forced off it by foreign creditors from buying any US Treasuries in which QE is used to fix the bond yields lower than what the real market dictates.
    30 Jan 2014, 01:26 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11474) | Send Message
     
    You are quite wrong, this is the 2nd time we engaged in QE. The first time was in the roaring twenties up to the Great Depression. Talk about being doomed to history repeating itself. Bernanke obviously knows 20's QE caused the Great Depression and seems to be hankering to cause another one. He is not a savior, more like a devil.
    30 Jan 2014, 01:28 AM Reply Like
  • BISTRO_CFO
    , contributor
    Comments (117) | Send Message
     
    Topcat, I agree!
    29 Jan 2014, 02:11 PM Reply Like
  • june1234
    , contributor
    Comments (3066) | Send Message
     
    EEM is not going to like that
    29 Jan 2014, 02:25 PM Reply Like
  • 1GreatCFA
    , contributor
    Comments (1135) | Send Message
     
    I think the markets view is BFD. Looks like something called Earnings are going to torpedo this Bull. I remember reading about Earnings in CFA school...
    29 Jan 2014, 02:31 PM Reply Like
  • DGI_Wolverine
    , contributor
    Comments (45) | Send Message
     
    Except a solid majority of earnings announced so far have met or exceeded analyst targets.
    29 Jan 2014, 04:46 PM Reply Like
  • 1GreatCFA
    , contributor
    Comments (1135) | Send Message
     
    On cost cutting and tax benefits perhaps. But how many companies exceeded on revenues and have been hiring people? I will take a look again tonight.
    29 Jan 2014, 05:43 PM Reply Like
  • thehash
    , contributor
    Comments (51) | Send Message
     
    i guess this was expected.
    29 Jan 2014, 02:33 PM Reply Like
  • askalpha
    , contributor
    Comments (2) | Send Message
     
    If only we were upgrading "our" infrastructure! The money has been going all around the world and not here. Let the market do its job and stop manipulating its freedom!
    29 Jan 2014, 02:34 PM Reply Like
  • Rose_Colored_Glasses
    , contributor
    Comments (974) | Send Message
     
    We should have had a stimulus for that - oh wait...
    29 Jan 2014, 05:12 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9404) | Send Message
     
    "Shovel Ready Jobs­™"
    29 Jan 2014, 09:14 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9404) | Send Message
     
    Can someone actually provide PROOF that QE and the Wall Street Bailout saved people in places like Boulder, CO and Ames, IA or Little Rock, AR from disaster?

     

    I have yet to see evidence that regular, everyday small businesspeople or farmers would have been rendered homeless if AIG and BAC weren't "saved".
    29 Jan 2014, 02:50 PM Reply Like
  • sbeardsley702
    , contributor
    Comments (65) | Send Message
     
    Try looking here: http://www.google.com
    29 Jan 2014, 02:59 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9404) | Send Message
     
    I think the chances of a collapse in the American monetary system if we didn't have QE and Wall Street bailouts is about the same as Saddam Hussein attacking the U.S. if we didn't start a war in Iraq first in 2003.
    29 Jan 2014, 08:57 PM Reply Like
  • rgiunta
    , contributor
    Comment (1) | Send Message
     
    We have already borrowed too much. We continue to borrow more on top of that. Taper more, but do it gradually to let markets adapt without a major jolt in interest rates. If we can keep the cost of capital low, we can continue to provide encouragement to investors and companies to fund their projects.
    29 Jan 2014, 03:07 PM Reply Like
  • inkyx
    , contributor
    Comments (516) | Send Message
     
    Deep--I'm a small business man, and I think Bernanke saved my business, corporate housing and apartments. If there were no stimulus, the businesses in the area would not have booked suites, people would not have rented apartments, and I would have lost my place. It would have been a snowball effect, where some business goes under, then others follow---much like those small farming towns in the Midwest. It was very bad in 2009, and suddenly things turned around. Homeless---no, and AIG, BAC, GM etc being saved, yes business is an American thing and big business is part of that.
    29 Jan 2014, 03:14 PM Reply Like
  • kmi
    , contributor
    Comments (4239) | Send Message
     
    Yep, for my two cents, had we had a bout of real deflation - which looked extremely likely - and rents started decreasing, one wonders what would have happened to all those landlords who had mortgages to pay the payments of which would not go down during deflation.... My primary business is rentals... So I agree with you,
    29 Jan 2014, 05:01 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9973) | Send Message
     
    kmi,
    And how is it that all those computer and electronic manufactures and sellers have weathered real deflation for so long now , and yet they seem to be doing just fine. Why is it just the noncompetitive areas that always want inflation?
    29 Jan 2014, 08:48 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9404) | Send Message
     
    inkyx:

     

    I don't know about you but I was raised to believe that you must take a risk to embrace an opportunity.

     

    I know that if your business had gone under it may not have been directly your fault. But the fact is we ALL looked the other way while BAC, C, AIG, JPM, GM, etc. took ENORMOUS risks and rode the money train for as long as they could.

     

    We ALL re-elected the politicians who looked the other way while systemic risks built up underneath the surface. Regulation? Who cares...look at that stock market go!!

     

    But when the bill came due NOBODY wanted to pay the price. So even people who usually don't depend on Mommy Government (like Larry Kudlow) were howling for the Central Bureaucracy to come to the rescue and keep us from feeling pain.

     

    This attitude continues to this day. We Americans don't want to detox...just keep injecting us with the good stuff (QE) so that we can party on.

     

    The more we depend on Mommy Government to save our hides the more Mommy Government controls us.

     

    That is why we Americans should have suffered the consequences in 2008.

     

    It would have hurt like hell but at least in 2014 the pain would be over and we would be rebuilding with a fresh start (about $7 trillion LESS debt for our kids and grandkids).

     

    Imagine a country where the world of business and finance is free to discover true asset pricing with no mind to what Fed officials are doing.

     

    It used to be that way not too long ago.
    29 Jan 2014, 09:07 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9404) | Send Message
     
    untrusting investor:

     

    Exactly.

     

    Deflation is to be embraced. As long as wages don't fall as fast as prices there can be no problem.

     

    You see this in action every few years when you buy a computer or most other electronic devices.
    29 Jan 2014, 09:12 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (4278) | Send Message
     
    the funny money is going away.
    29 Jan 2014, 03:43 PM Reply Like
  • shmuel1209
    , contributor
    Comment (1) | Send Message
     
    This is a correction !!!
    29 Jan 2014, 04:23 PM Reply Like
  • Rose_Colored_Glasses
    , contributor
    Comments (974) | Send Message
     
    I would kick the can down the road a bit - cannot cut back while the participation rate in the labor force is at its lowest point in 5 decades. Keep giving business free money until the folks are working.
    29 Jan 2014, 05:15 PM Reply Like
  • Ivan the Fool
    , contributor
    Comments (96) | Send Message
     
    What kind of squirrel chops down his own tree? If you could write your own reality, would you make yourself the Good Guy? Are good guys loved more for their frugality or for getting the bad guys? Markets do not "emerge," they are found and exploited or put down by opposition.

     

    Those who rob Peter to pay Paul can always count on the support of Paul. - GBS
    29 Jan 2014, 06:13 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (811) | Send Message
     
    This was Ben Bernanke's last day right?
    I wonder how the Yellen Fed will change and deal with tapering.
    29 Jan 2014, 09:42 PM Reply Like
  • 1GreatCFA
    , contributor
    Comments (1135) | Send Message
     
    Well don't forget they can delay it...i.e. tapper the tapper.
    29 Jan 2014, 11:11 PM Reply Like
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